Develop and implement written policies detailing procedures and responsibilities related to program administration and monitoring of the escrow program.
2017-AT-1003 | March 01, 2017
The Puerto Rico Department of Housing, San Juan, PR, Did Not Properly Administer Its Multifamily Special Escrow Funds
Housing
- Status2017-AT-1003-001-EOpenClosed
- Status2017-AT-1003-002-AOpenClosed
Transfer all escrow funds to a financial institution that is supervised by the Federal Deposit Insurance Corporation or the National Credit Union Administration and ensure that all deposits are secured by the Federal Government. Any amount not recovered from the Development Bank must be reimbursed to the escrow account from non-Federal funds.
- Status2017-AT-1003-002-BOpenClosed
Submit required certifications and supporting documentation showing that residents of escrow-funded activities met the established income limit requirements. Any amounts determined ineligible must be reimbursed to the escrow account from non-Federal funds.
2017-FO-0801 | March 01, 2017
Independent Attestation Review: U.S. Department of Housing and Urban Development, DATA Act Implementation Efforts
Chief Financial Officer
- Status2017-FO-0801-001-AOpenClosed
Request sufficient monetary resources to upgrade HUD’s many legacy and financial systems so its technologies and data elements no longer differ and can perform the necessary data inventory and mapping to report HUD’s information in USASpending.gov accurately and in a timely manner.
- Status2017-FO-0801-001-BOpenClosed
Ensure that HUD program officials continue taking appropriate steps to fully resolve its errors and data quality issues that the agency identified during implementation, including those related to assigning a unique identifier consistent with the established DATA Act schema, such as the Federal Award Identification Number.
- Status2017-FO-0801-001-COpenClosed
Designate official DATA Act points of contact for FHA and Ginnie Mae and oversee the progress of the two HUD components’ individual implementation plans, ensuring timely and successful completion of their steps.
- Status2017-FO-0801-001-DOpenClosed
Finalize required mapping of HUD’s, including FHA’s and Ginnie Mae’s, financial, budgetary and programmatic data, as required by the DATA Act and OMB guidance.
2017-FO-0005 | February 28, 2017
HUD’s Fiscal Years 2016 and 2015 (Restated) Consolidated Financial Statements Audit (Reissued)
Chief Financial Officer
- Status2017-FO-0005-001-AOpenClosed
Evaluate the current content of HUD’s financial statement note disclosures to identify outdated or irrelevant information that may not be needed, while maintaining compliance with OMB Circular A-136 and presenting the reader with the information necessary to understand HUD’s financial statements.
- Status2017-FO-0005-001-BOpenClosed
Work with FHA and Ginnie Mae to reevaluate the note consolidation process to determine changes that can be made to the process to ensure compliance with financial reporting requirements.
- Status2017-FO-0005-001-COpenClosed
Reassess HUD’s current consolidated financial statement and notes review process to ensure that (1) all reviewers have sufficient financial reporting experience; (2) it includes steps to verify that the notes match HUD’s financial statements, are sufficiently supported, and accurately include FHA and Ginnie Mae information; and the review can be completed within the required timeframe needed to allow for audit.
- Status2017-FO-0005-001-DOpenClosed
Develop a plan to ensure that restatements to HUD’s consolidated financial statements are properly reflected in all notes impacted by the restatement.
2017-KC-1801 | February 22, 2017
Final Action Memorandum: Purchaser of HUD-Insured Single-Family Property Settled Allegations of Causing the Submission of a False Claim
General Counsel
- Status2017-KC-1801-001-AOpenClosed$5,000Questioned Costs
Recommendations with questioned costs identify costs: (A) resulting from an alleged violation of a law, regulation, contract, grant, or other document or agreement governing the use of Federal funds; (B) that are not supported by adequate documentation (also known as an unsupported cost); or (C) that appear unnecessary or unreasonable.
Acknowledge that the settlement agreement for $5,000 represents an amount due HUD.
2017-NY-1007 | February 16, 2017
Seneca Mortgage Servicing LLC, Elma, NY, Generally Complied With HUD’s Loss Mitigation Program Requirements for Servicing Its Portfolio of FHA-Insured Mortgages
Housing
- Status2017-NY-1007-001-AOpenClosed$19,136Questioned Costs
Recommendations with questioned costs identify costs: (A) resulting from an alleged violation of a law, regulation, contract, grant, or other document or agreement governing the use of Federal funds; (B) that are not supported by adequate documentation (also known as an unsupported cost); or (C) that appear unnecessary or unreasonable.
We recommend that the Acting Deputy Assistant Secretary for Single Family Housing instruct Seneca Mortgage to repay the $19,136 in ineligible holding costs to the FHA insurance fund.
- Status2017-NY-1007-001-BOpenClosed
We recommend that the Acting Deputy Assistant Secretary for Single Family Housing instruct Seneca Mortgage to ensure that reimbursement is not requested for holding costs incurred beyond the conveyance deadline related to FHA loan number 281-3493258.
- Status2017-NY-1007-001-COpenClosed
We recommend that the Acting Deputy Assistant Secretary for Single Family Housing instruct Seneca Mortgage to instruct the investors or holders for FHA loan numbers 501-7067695, 501-6877136, 061-0982338, and 501-5885504 to transfer these loans to FHA-approved servicers.
- Status2017-NY-1007-001-DOpenClosed
We recommend that the Acting Deputy Assistant Secretary for Single Family Housing instruct Seneca Mortgage to implement procedures to ensure that FHA loans are transferred only to FHA-approved servicers regardless of investor input.
- Status2017-NY-1007-001-EOpenClosed
We recommend that the Acting Deputy Assistant Secretary for Single Family Housing instruct Seneca Mortgage to strengthen conveyance procedures to ensure that properties are transferred to HUD within 30 days of securing the property, thereby ensuring that ineligible costs are not paid by HUD on future loans submitted for claim.
- Status2017-NY-1007-001-FOpenClosed
We recommend that the Acting Deputy Assistant Secretary for Single Family Housing instruct Seneca Mortgage to strengthen program controls and procedures to ensure that servicing efforts are accurately reported in HUD systems, thereby complying with HUD’s loss mitigation requirements.
- Status2017-NY-1007-001-GOpenClosed$9,022Questioned Costs
Recommendations with questioned costs identify costs: (A) resulting from an alleged violation of a law, regulation, contract, grant, or other document or agreement governing the use of Federal funds; (B) that are not supported by adequate documentation (also known as an unsupported cost); or (C) that appear unnecessary or unreasonable.
We recommend that the Acting Deputy Assistant Secretary for Single Family Housing review the part B claim paid for FHA loan number 501-7612832, determine the amount of holding costs paid after the conveyance deadline, and require the relevant servicer to repay the ineligible holding costs to the FHA insurance fund.
- Status2017-NY-1007-002-AOpenClosed
We recommend that the Acting Deputy Assistant Secretary for Single Family Housing instruct Seneca Mortgage officials to develop and implement program controls and procedures for FHA-insured loans being subserviced by another lender, including procedures for conducting quality control reviews of the subservicer’s actions.